September 8, 2020
Looking to maximise your cashflow when investing in buy-to-let property?
If making your money work harder for you is important, and you want your investment to go further, then you’re not alone. (We’re actually predicting a surge of investor interest)
Often the excitement of securing a new, empty buy-to-let can be dampened somewhat by the prospect of having to redecorate, get the place fully compliant and ready for tenants to move in… then the wait before they actually do.
But what if I told you there was a way you could bypass all of the above, and go from signing on the dotted line, to receiving your rental income as soon as the property changes hands?
As one half of the Estate Agent for Landlords, I’m going to explain everything below, so you can make your money go further when purchasing your next buy-to-let property.
How to maximise your cashflow when investing in property
One of the most effective ways to maximise your cashflow when investing in buy-to-let property is to buy an already tenanted property. In other words, a property with sitting tenants.
Not everyone is aware this is an option, but with little to no capital expenditure, and rental income on Day 1 of ownership, it does give new buyers a bit of a leg-up on the more traditional route of buying investment property
Because the property is already being lived in, it’s fully compliant and usually in quite a good condition, with little to no work required. All the landlord safety documentation – as well as the tenancy agreement – simply changes hands.
There’s also no void periods whilst you find a new tenant – and maybe a new letting agency – and wait for them to move into the property. There’s also no buyers’ fees (although not all specialist estate agents are the same – so always check to make sure).
In fact, the typical costs you could save when buying a tenanted property range from £19,220 to £31,085compared to those involved when buying an empty property. You can see how we calculated this by viewing a full breakdown on our recent blog.
Other benefits of buying a tenanted property
Of course, there are other benefits involved when buying a tenanted property, such as the fact that you won’t have the extra stress or hassle of having to find a letting agent to manage the property (you can probably keep the existing one, who already knows the property well).
There’s also usually the option to buy at a fixed price, with no closing dates – because let’s be honest, who actually likes closing dates? There’s less uncertainty in general, with no competing against homebuyers (and no scouring through listing sites), and you’ll even know the rental price before you buy.
TIP: For more information and insights, check out our recent blog, which goes into more detail about all of the benefits of buying a tenanted property.
Advice from the property pros
Buying a property with sitting tenants is a great way to invest in property whilst maximising your cashflow; whether you’re just getting into property, or you’re looking to expand your current portfolio.
With all the benefits, it might be a surprise that more people haven’t heard of this option. It’s not exactly a difficult process, with the tenancy simply switching hands, and much of the traditional sales process (like a home report, photos and video, and physical viewings) still apply.
Here at Portolio, we strongly believe that increasing wealth and financial freedom through property investment should be a thing for everyone – not just for the few. It’s one of the reasons we do what we do – and we call it #ThePortolioWay.
Want to learn more about buying a tenanted property? We’d recommend speaking to a specialist estate agent (like us) who should be happy to guide you through your options, and talk you through what’s involved.
TIP: You can even check out the tenanted properties for sale right now on our properties page – and sign up to receive property updates for areas and types of properties that you’re interested in.
In summary…
Well, there you have it. Buying tenanted property is a great way to maximise your cashflow when investing in buy-to-let property, as it means little to no capital expenditure, and none of the void period you would usually expect whilst waiting on a tenant to move in.
What’s more, you can expect rental income on Day 1 of ownership.
If buying a tenanted property sounds like a good option for you, or you’d like to know more about it, why not get in touch with us today? Or, you can sign up to our property alerts at the footer of our properties page.
We’re always happy to help!
Written by Ross MacDonald, Director of Sales & Co-founder of Portolio
Get in touch on 07388 361 564 or email to [email protected]
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